All about Investments

Invest the Halal Way!!!

Pragmatic Wealth's Bi-Weekly Newsletter

The act of committing money or capital to an endeavor with the expectation of obtaining an additional income or profit. It's actually pretty simple: investing means putting your money to work for you. Essentially, it's a different way to think about how to make money.

INVESTING IS A LONG TERM ACTIVITY

When you invest, you buy asset like shares, mutual funds, gold or real estate when it’s available at a bargain and wait till its price go up. You may have to wait for a long time, say 5 or 10 years to get a real appreciation for your invested funds. Hence, investing is a long term activity because you have to wait for your rewards.

OBJECTIVES OF INVESTING

Objectives or purpose of investing would be different for different people.  By choosing to finance your expenses, accumulate money, invest that accumulated fund and limiting the amount of debt – you can achieve most of your life’s goals. Normally, a person would invest with one or many of the following objectives in mind:

·         A Regular Income

·         Creation of wealth

·         Preserving one’s capital

·         Planning for retirement life

·         Education /marriage of his children.

·         To start a business

THE PROCESS OF INVESTING

The process of investing is quite simple- Depending upon the amount money you have, you will have to short list the type of asset suitable for your investment. Next, you’ll have to gather knowledge of that particular asset category in which you are planning to invest your money in. This assessment will tell you whether you are choosing the right asset class for investment, or is it the right time for investment. Once you gain enough knowledge, try to draw a plan to invest systematically – get access to the right information, plan properly and make the right choice.

For Bi-Weekly Newsletter of Pragmatic Wealth Management Pvt. Ltd. Click Here

Contact Us at:

PRAGMATIC WEALTH MANAGEMENT PVT. LTD.

Head Office:

102, 1st Floor, Topaz Society,

Dr. Nair Road, Agripada, Mumbai Central (E), Mumbai 400011

Tel: +91-22-23001290 / 23007290/ 8108178683

E-mail: contact@pragmaticwealth.net

Market Brief

Invest the Halal Way!!!

Pragmatic Wealth's Bi-Weekly Newsletter

It was a pathetic week for the markets and it had a dismal close, Nifty down by 300 points that is about 3 and a half percent. The market internals (breadth) were very poor and almost 4 out of 5 scripts corrected by about 5-10 percent. All this happened on the back of domestic turmoil, below normal rain forecast, failure of Union Govt. to clear Land Form reforms, farmer suicide woes, and poorly reported corporate earnings led to this corrective action. However, market in terms of Nifty, held the very crucial level of 8240 which was the low registered in March 2015 and incidentally being 200 DMA (Moving Average). May be market is in search of some positive news flows to bounce back.

Looking at the market moves and the internals, it appears that markets will remain volatile and choppy. On the back of any positive news flows, markets could attempt a pull-back rally, perhaps would test the crucial resistances of 8450 to 8550, but it can come out of the woods only if it manages to close above 8700, until that markets will be in the control of the bears. Market is so vulnerable and frail in short to intermediate term that any bad news from here on would see the down-side and in that event market would test the low of this year of 8060 registered in January. The fall would get accentuated if the Nifty closes below 8000 and we should be prepared for a protracted correction in the market.

Under these market conditions, investors should remain cautious, and as earlier suggested exit from fundamentally weak and high debt leverage companies in the rally. Since the market is in a long term bull markets, long term investors can use deep declines to buy well managed growth companies.

For Bi-Weekly Newsletter of Pragmatic Wealth Management Pvt. Ltd. Click Here

Contact Us at:

PRAGMATIC WEALTH MANAGEMENT PVT. LTD.

Head Office:

102, 1st Floor, Topaz Society,

Dr. Nair Road, Agripada, Mumbai Central (E), Mumbai 400011

Tel: +91-22-23001290 / 23007290/ 8108178683

E-mail: contact@pragmaticwealth.net

Islami Tijara - India's Premier Islamic Finance Magazine

For further communication, contact us at:

PRAGMATIC WEALTH MANAGEMENT PVT. LTD.
Head Office:

102, 1st Floor, Topaz Society,
Dr. Nair Road, Agripada, Mumbai Central (E), Mumbai 400011

Tel: +91-22-23001290 / 23007290/ 9594932488 / 8108178683
E-mail: contact@pragmaticwealth.net

Equity Market - A Big Picture

Invest the Halal Way!!!

Pragmatic Wealth's Bi-Weekly Newsletter

The Indian stock market has been among the best performing markets in the world, with Sensex rising by 26 %, index being 22386 on 1^st April 2014, and 27957 on 31^st March 2015. The Nifty rose by 27%, index being 6704 on 1^st April 2014, and 8491 on 31^st March 2015. I believe, this enormous massive run of the Indian markets will continue in the coming years on the backdrop of pending reforms, just concluded Telecom Spectrum Sale and Coal Block Auction. Immense drop in the Crude oil prices have played a positive role for the Indian economy in form of savings of foreign reserves. RBI has been playing a major role for pushing the economy to up-ladders by stabilizing the Rupee versus the dollar. Furthermore, The Reserve Bank has also very well managed the inflation and interest rates, by cutting down some very important rates from time to time being Repo Rate or Statutory Liquidity Ratio (SLR). This move of the RBI has managed to maintain enough liquidity in the economy. The BJP-led Union Government has managed well with control in fiscal consolidation, and bringing in some required reforms such as FDI in insurance sector up to 49%. However, the pending GST Bill and Land Reforms Bill are yet to make their mark in the economy.

The some-what stabilized US Economy gives a sense of relief as far as global markets are concerned, however, the Euro Zone still seems to be a concern with Greece unable to cope-up with the rising debt, and the Middle East war-rift still on a rise. Macro economic problems such as corporate earnings not expected to do well in the near term, unseasonal rains affecting the crops may arise. The Bleeding Non-performing Assets (NPAs) of the public sector banks comes forth as a macro issue concerning the economy, since banks with higher NPAs would be reluctant to reduce the interest rates for their customers, even though RBI lowers the rates by some basis points. Pharmaceutical companies may get a hit-back due to reasons pertaining to patents or drug contents by FDA, US. Information Technology companies may get affected if rupee appreciates or falls below 61.

Market Technical's

Analysing the markets from a PE (Price to Earnings per share) perspective, the markets (Nifty) are currently trading at a PE multiple of 23.5 (Nifty 8700 / Earnings 373), a year forward i. e 2015-16, expected PE looks around 20.5 for Nifty, and for 2016-17, its trading around a multiple of 17. Hence, market looks rightly priced. Historically, we have observed that markets are reluctant to go below a PE multiple of 17 and hence, with the current earnings, in the worst case possible scenario, the Nifty is not likely to go below 7300. However, in the intermediate term, a PE of 19 seems to be a good floor and Nifty may find support around 8100.

Whereas charts are concerned, all the major price trends for the Markets are up, and currently in absence of any major triggers, markets will remain in a broad range between 8500 and 9000 on the Nifty. Technically, trade and close below 8500 will see sharp corrections in the markets and Nifty would test 8000 levels. However if Nifty holds 8500 and convincingly breaks out above 9000 with volumes on close basis, it will witness a sharp rally and in that case it would test 9400 initially, and perhaps 10000 plus going into next year.

Take-away 

Going forward, markets will be very stocks specific. Healthcare and Information Technology sectors were the star performers in past. They may also do well but not as much as it did in the past and could at best be market performers, reason being slow down in Europeans markets and strength in rupee. This will keep the sectors under check. However a turnaround in Oil & Gas, Capital Goods and Infra structure sectors is very likely. These are good times to remain invested in equity markets. Long term investors will certainly get good returns, far more than the Bank deposits and other Debt instruments. 

For Bi-Weekly Newsletter of Pragmatic Wealth Management Pvt. Ltd. Click Here

Contact Us at:

PRAGMATIC WEALTH MANAGEMENT PVT. LTD.

Head Office:

102, 1st Floor, Topaz Society,

Dr. Nair Road, Agripada, Mumbai Central (E), Mumbai 400011

Tel: +91-22-23001290 / 23007290/ 8108178683

E-mail: contact@pragmaticwealth.net

Market Brief

Invest the Halal Way!!!

Pragmatic Wealth's Bi-Weekly Newsletter

After the collapse for a subsequent 5-day long stretch, the fall of the markets have been arrested, mainly due to reasons pertaining to the maintained stance of Credit Suisse for India at 10%, buoyed by the nation’s economic recovery and falling inflation, and the Union Government tabling the Goods and Service Tax Bill (GST) in the parliament. Because of the above mentioned reasons, the market has been able to sustain its vital support of 8240, from where it bounced back sharply to close in the positive territory. Markets are not out of the woods, as there is an overhang of weak monsoons, corporate results, and uncertain global markets, and geopolitical conditions. All this will keep the markets jittery and volatile. In the absolute near term, a dead-cat bounce is quite possible, and Nifty would attempt to test 8500 to 8600 levels on an initial basis and in a better case scenario, it may attempt to test 8700.

However, due to high vulnerability, any major bad news can bring down the markets sharply and in event of Nifty closing below 8240, would prove catastrophic and sizeable downside in the market can be witnessed. So in the near term, market at best can be range bound or drift downwards. Investors should remain cautious and wary about the markets, and it is advisable to exit weak and under performing stocks in the rally. The longer term investors can use sharp declines in the market to buy selected stocks in sectors like Capital goods, Healthcare, Oil and Gas, and Infrastructure.

For Bi-Weekly Newsletter of Pragmatic Wealth Management Pvt. Ltd. Click Here

Contact Us at:

PRAGMATIC WEALTH MANAGEMENT PVT. LTD.

Head Office:

102, 1st Floor, Topaz Society,

Dr. Nair Road, Agripada, Mumbai Central (E), Mumbai 400011

Tel: +91-22-23001290 / 23007290/ 8108178683

E-mail: contact@pragmaticwealth.net